Is the liquidity constraint supposed to mention expenditures that will be paid immediately (and thus excluded from the asset base)?
Yes. I think CFAI has done it both ways, but on the 2011 exam they included it. I am going to include it.
It was included with the Ingers. It was not included on the 2008 exam.
differentiate liquidity requirement and required rate of return…
when we calculate the rate of return, we need to cal investable fund (include the immediate payment or not - not )
liquidity include immediate liquidity, first year and so on…it effects on asset allocation (cash requirement)